We are evaluating a project that costs $$883,000,$ has a life of eight years, and has no

salvage value. Assume that depreciation is straight$-$line to zero over the life of the

project. Sales are projected at $99,000$ units per year. Price per unit is $$38,$ variable cost

per unit is $$25,$ and fixed costs are $$894,479$ per year. The tax rate is $25$ percent, and we

require a return of $13$ percent on this project. The projections given for price, quantity,

variable costs, and fixed costs are all accurate to within $+/-19$ percent.

a$.$ Calculate the best$-$case NPV$.$

Best case

b$.$ Calculate the worst$-$case NPV$.$

Worst case